As per the insights from the analytics platform Lookonchain, a Bitcoin whale has recently initiated a short position valued at $332 million with an entry price of $84,040.
This position was executed using 40X leverage, indicating that the trader is utilizing 40 times the initial investment.
Currently, Bitcoin is trading at $83,945, based on data from CoinGecko. The cryptocurrency has experienced a decline of 2.3% over the past week.
Should the price of this leading cryptocurrency surge to the $85,000 mark, the substantial position is at risk of being liquidated.
Notably, the trader in focus previously earned an impressive $16.39 million in just a month on the well-known decentralized perpetual trading platform Hyperliquid, with all eight of his trades proving to be profitable across two wallets.
Several commentators on X are now speculating that the trader’s position is precarious and will likely face liquidation.
“These types of guys will lose it all,” commented one user on social media.
The use of 40x leverage significantly heightens the risk of liquidation, as even a minor 2.5% price move could eliminate his entire position.
According to CoinGlass, approximately $94 million in cryptocurrency has been liquidated in the last 24 hours, with short positions comprising the majority at $49 million. The largest individual liquidation occurred on Binance, totaling $582,130 with the BTC/USDT pair. In total, over 65,000 traders have been liquidated in the specified timeframe, with Binance accounting for 38.79% of all liquidations.
